HCL Technologies rose 1.02% to Rs 1,349 at 9:16 IST on BSE after consolidated net income as per USGAAP rose 5.7% to Rs 1496 crore on 2.8% increase in revenues to Rs 8184 crore in Q2 December 2013 over Q1 September 2013.
The company announced Q2 result before market hours today, 16 January 2014.
Meanwhile, the BSE Sensex was up 82.98 points, or 0.39%, to 21,372.47
On BSE, so far 20,596 shares were traded in the counter compared with average volume of 63,176 shares in the past one quarter.
The stock hit a record high of Rs 1,367 in intraday trade today, 16 January 2014. The stock hit a low of Rs 1,342 so far during the day. The stock hit a 52-week low of Rs 652.60 on 11 February 2013.
The large-cap IT company has an equity capital of Rs 139.79 crore. Face value per share is Rs 2.
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HCL Technologies said that in constant currency terms, revenue from Europe and Americas grew 5% and 3.4% respectively in Q2 December 2013 over Q1 September 2013. Revenue in Infrastructure Services and Business Services grew at 4.8% and 11.4% respectively, followed by Engineering and R&D Services at 2% and Application Services at 1.4% respectively, in Q2 December 2013 over Q1 September 2013.
Growth was led by existing momentum verticals of Manufacturing and Financial Services at 4.4% and 2.1% respectively in Q2 December 2013 over Q1 September 2013. Verticals of Public Services and Retail & CPG grew at 20.8% and 6% respectively in Q2 December 2013 over Q1 September 2013, HCL Technologies said.
As a company HCL has always differentiated itself on two key pillars - corporate excellence and governance, and trust through transparency and flexibility. Our sustained efforts in these areas continue to be recognized. said Shiv Nadar, Chairman & Chief Strategy Officer, HCL Technologies
HCL continues its profitable growth trajectory with yet another stellar quarter of 4% QoQ revenues growth and 39.1% YoY net income growth. The company also crossed many milestones during the quarter, with our CY13 revenues crossing the $5bn landmark. In addition Infrastructure Services, Europe geography and Manufacturing vertical each crossed $1.5bn in revenues. said Anant Gupta, President & CEO, HCL Technologies.
This quarter we also made significant progress in the execution of our Digital System Integration Services strategy by signing new engagements and establishing dedicated Centers of Excellence to further strengthen our thought leadership and thrust on Gen 2 Outsourcing, he added.
"We continue to deliver superior performance. The operating efficiencies, the scale of business in our Run-the-Business offering and the optimization of G&A spend helped in pushing the net income margin to another high of 18.3% this quarter. The asset light model reflected by our Fixed asset turnover at 10x of revenues, and efficient working capital management, continued to keep the return on equity at a historic high of 35% and operating cash flows in excess of 100% of net income", said Anil Chanana, CFO, HCL Technologies.
Meanwhile, IT services provider HCL Technologies and CSC, a global leader in next-generation IT services and solutions, have formed a strategic partnership to address the substantial market opportunity created by the need for enterprise clients to modernize their applications and transition to the cloud. The announcement was made after market hours on Wednesday, 15 January 2014.
HCL and CSC will create a world-class application modernization delivery network to enable enterprises to shift from legacy technologies to a cloud-enabled platform. The first delivery centers will be launched in Bangalore and Chennai. These delivery centers will lower the risks and costs for clients transitioning to the cloud, HCL Technologies said in a statement.
The joint application modernization offering will be enhanced with vertical specific initiatives starting with Banking & Financial services through the creation of a banking center of excellence. The partnership will be standardizing the delivery of modernized applications and enable them to be brokered onto any cloud environment, using platforms such as CSC's ServiceMesh, the company said.
According to Gartner's 2014 Market Forecast for IT Services the addressable market for applications services is $210 billion in 2014. The strategic partnership addresses what we believe to be one of the fastest growing segments of the applications services market.
"We are pleased to partner with CSC. The company's strong technology portfolio and client base coupled with HCL's robust system integration capabilities will be a formidable combination in the application modernization market," said Anant Gupta, President and Chief Executive Officer of HCL Technologies. "Application modernization forms the first phase of HCL's Digital System Integration strategy. Enterprises today view digitalization as a route to business model transformation. Organizations have not been able to accrue the potential benefits from digitalization, as they are shackled by legacy technologies."
CSC's next-gen technology solutions coupled with the technology consulting, systems integration and global delivery capabilities of HCL will offer a new value proposition in the market. This value proposition will create a roadmap for bringing legacy products into next gen solutions and execution excellence leading to an optimized business case for application modernization for customers.
According to the terms of the agreement, both companies intend to share equally all cloud application modernization revenue and direct costs. With a new governance board providing oversight, the partners will share dedicated employees and technologies, as well as production and development work.
As part of the partnership, HCL will white label CSC's BizCoud, industry leading, highly secure and highly flexible private cloud offering for the enterprise. HCL and CSC will benefit from the increased scale of this offering, expanded coverage in new markets and incremental revenue opportunities, the company said.
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